Business

• Corporate State Income Tax Payment

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  In California both S-corporations and C-corporations pay corporate income tax using this form. Quarterly estimated tax payments should be mailed to the Franchise Tax Board. Because of the minimum annual tax (franchise fee), all corporations must use this form, even if they didn't have a quarterly net income or paid their net income out as salaries or bonuses.
  Forms to use		100-ES Coupon for Quarterly Income Tax
  How often?		Quarterly payment requirement
  Tax rates		S-corporations: 1.5% (.015 of net income) C-corporations: 8.84% (.0884) of net income Financial corporations and banks have other tax rates. Contact the Franchise Tax Board.
  Minimum tax		Beginning your second year after incorporation, there is an $800 minimum tax for all corporations, due regardless of your income.
  What to pay now		For the first year, you pay the tax rate (1.5% for S-corporations or 8.84% for C-corporations) times your corporation's net taxable income. In future years to avoid penalties, you must pay estimated tax payments equal to 95% of your actual tax bill or 100% of last year's tax bill, whichever is less. Make sure that: 25% of your estimated tax bill is paid by April 15 50% of your estimated tax bill is paid by June 15 75% of your estimated tax bill is paid by September 15 100% of your estimated tax bill is paid by December 15
  Due date		For corporations with a 12/31 year-end: April 15, June 15, September 15, December 15.
  How to submit		You have two payment options: Pay electronically via phone or the Internet go to http://www.ftb.ca.gov/businesses/eft/index.html. Select Authorization Agreement Complete the agreement. You will be asked to select ACH Debit or Credit. The easiest is to select ACH Debit, which means that you will contact the state and they will withdraw funds from your account. Mail the agreement with a copy of a voided check to: EFT Unit PO Box 942857 Sacramento, CA 94257-0501 Questions? Call (916) 845-4025 or visit http://www.ftb.ca.gov/businesses/eft/index.html Mail your check with form 100-ES voucher to: Franchise Tax Board PO Box 942857 Sacramento, CA 94257-0531 Put your California corporation number on the voucher (see your Articles of Incorporation for the number).
  Questions?		Call the California Franchise Tax Board (800) 852-5711 or visit http://www.ftb.ca.gov/forms/search/index.aspx.

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• Quarterly Federal Tax Deposit - C Corp

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  C-Corporations must pay corporate income tax deposits on their net income. The tax is paid quarterly online using the EFTPS system. S-corporations do NOT pay this tax or use these forms. Some corporations avoid corporate taxes - and this form - by paying all their profits in salaries and bonuses. If you do this, remember to pay employment taxes on salaries and bonuses.
  Forms to use		1120-W Worksheet for Quarterly Taxes EFTPS Online payment
  How often?		Quarterly deposit requirement
  How to complete the form		Steps What to do 1 Estimate the corporation's year-to-date net income. If you are unsure what makes up net income, look at the front page of IRS 1120. Estimate the corporation's net income for the remainder of the year. Add the two and put the total on line 1 of 1120-W. 2-11 Multiply the first $50,000 of line 1 by 15%; the next $25,000 by 25%; and the next amount up to $9,925,000 by 34% and any remaining amount by 35%. 12-14 These lines are for excess tax if you are a personal service corporation or had net taxable income over $100,000. 15-22 Subtract any expected tax credits to calculate total estimated tax on line 22. 23-24 If you were in business last year and are not a large corporation, enter your tax from last year on line 23a. You must pay the smaller of this year's tax (line 22) or last year's tax (line 23a). Divide it by the number of installment due dates left. If you were not in business last year, skip line 23a and divide your estimated tax by the number of installment due dates left. Pages 2, 3 If your corporation's income is seasonal, you may complete Schedule A or Part II to reduce your quarterly payment.
  Under $500 in tax?		If your total year's tax is under $500, you do not have to make quarterly payments. If it is more than $500, you must pay 100% of your tax through quarterly estimated tax payments. In future years, small corporations may pay 100% of last year's tax. Large corporations can use last year's tax to estimate their first quarter's payment only.
  Due date		April 15, June 15, September 15, December 15. Any tax due on your annual tax return is due March 15 of the following year (the same date as the annual tax return).
  How to pay		You must pay electronically using EFTPS. Keep the worksheet (1120-W) to use next quarter.
  Questions?		Call the IRS information hotline (800) 829-4933. For information about electronic payment, call the IRS EFTPS Customer Service Unit at (800) 555-4477 or visit https://www.eftps.com/eftps/index.jsp.

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• Sales and Use Tax Return

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  This form is used to report and pay state sales tax. If you registered for a sellers permit, you must complete this form, even if you only sold wholesale and don't owe sales tax.
  Before we begin		The goal of the BT-401 form is to calculate sales tax and then divide it into the proper categories. The basic 7.5% state sales tax is actually three state required taxes: 6.25% state sales tax, ¼% county tax, and 1% local tax. In addition, if you conducted business in any other county or city that voted to increase its sales tax beyond 7.5%, there are one or more district taxes with tax rates ranging from .0125% to .5%
  How often		Usually a quarterly payment and reporting requirement
  Due date		Usually one month after calendar quarter-end:April 30, July 31, October 31, January 31. A few businesses complete this form annually, large businesses complete it monthly.
  What you have to know		Before completing this form online or on paper, you need to know: Your total sales - with and without sales tax Your total non-taxable sales The sales you made in each special taxing district in California (Sales made in districts where you have facilities or people - including your delivery people.) The Dept. of Tax and Fee Administration doesn't want to know how much sales tax you actually collected - because you are responsible for collecting the right amount. They are only concerned with your total sales.
  How to submit		There are two ways to submit BOE-401 and pay sales tax. Online using BOE-file. To use this system, you must register at https://efile.boe.ca.gov/boe/registration.jsp. Then login at https://efile.boe.ca.gov/boe/boe_login.jsp. At the end of the form, you will be asked to enter your bank information for payment directly to the Dept. of Tax and Fee Administration. By paper: BT401 Quarterly Tax Return of Sales and Use Tax Mail check for line 26 with BOE-401 to: Dept. of Tax and Fee Administration PO Box 942879 Sacramento, CA 94279-7072 Want to pay by credit card? Go to http://www.boe.ca.gov/elecsrv/internet.htm. The regular merchant fee for credit card transactions (about 2.5%) will be charged to you as a "convenience fee". You can also pay with your credit card over the phone by calling 1-800-2PAY-TAX. The same fees apply.
  Questions?		For questions or to periodically check to make sure the tax rates haven't changed, visit http://www.boe.ca.gov/sutax/sutprograms.htm or call the Dept. of Tax and Fee Administration at (800) 400-7115.

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Shareholders

• Shareholders' Quarterly Federal Income Tax Payments: 1040ES
• Shareholders' Quarterly State Income Tax

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  This form reports the same non-salary income as 1040ES. Each shareholder who receives non-salary income during the quarter should complete this form unless they have regular withholding on at least 90% of their total income. S-corporation shareholders owe quarterly estimated tax payments on their share of the corporations' net income. C-corporation shareholders only owe taxes if they received dividends during a quarter.
  Forms to use		540-ES Worksheet and instructions 540-ES Payment Coupon
  How often?		Quarterly payment requirement
  Tax rates		1-12.3% S-corporation: each shareholder's portion of the corporation's net taxable income or C-corporation: dividends received by each shareholder.
  How to complete the form		Line   What to enter 1 Adjusted gross income. Go back to IRS 1040ES and use the figure you calculated for line 1. 2 To simplify this form, just use the standard deduction. You may overpay slightly. If you do, you will receive a refund when you file the annual return. Single or married filing separately: $3,906 All others: $7,812 3 Total income: line 1 minus line 2. 4 Annual tax on line 3: Use the tax tables found here. 5 For nonresidents (or partial year residents) only. 6 $108 times the number of adults plus $333 times the number of your dependents. 8 Line 4 minus line 6. 9-17 Unless you had tax credits on last year's tax return (for joint custody, dependent parent, head of household, etc.) or had installment interest income, skip lines 9 to 17. 18 Total tax due: assuming that you had no credits, the same as line 7. 19 Amount to avoid penalties. Enter either 90% of line 15 or 100% of last year's tax, whichever is less. Farmers, fishermen and people with income over $169,740, see the form for special instructions. 20 Income tax that will be withheld during the year through payroll deductions on other jobs. 21 Total tax that must be deposited with Form 540-ES this year (line 20 minus line 19). 22 Divide line 21 by the number of quarterly due dates before next April 15th. For example, if it is June 2, divide by 3 (June 15, September 15, and January 15). Pay this amount this quarter.
  Due date		April 15, June 15, September 15, January 15.
  To pay		There are three payment options for shareholders: Pay online. To do this, each shareholder must first obtain a customer service number online. You will need your social security number and your gross wages (for California) from last year's tax return. Go to http://www.ftb.ca.gov/online/csn/index.asp You will be issued a customer service number that is good for this tax year only. To pay taxes, go to https://webapp.ftb.ca.gov/webpay/Login.aspx If you have questions, call (800) 353-9032. Pay using a credit card at Official Payments Corporation at (800) 272-9829. For questions call (877) 754-4413 or visit http://www.officialpayments.com. Pay by check and 540-ES voucher to: Franchise Tax Board PO Box 942867 Sacramento, CA 94267-0031 Shareholders should keep the worksheet for their records.
  Questions?		Call the California Franchise Tax Board (800) 852-5711. For forms, go to http://www.ftb.ca.gov/forms/search/index.aspx or call (800) 338-0505.

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